 | Term | Definition |
| |
factors of production |
the resources people have for producing goods and services to satisfy their wants (land labor and capital) |
| |
labor |
a factor of production; the skills, knowledge, time and energy of people involved in making a product or providing a service |
| |
land |
a factor of production, made up of natural resources that are needed to help produce goods and services (non man-made) |
| |
capital |
a factor of production, anything produced in an economy that is used to produce other goods and services (man-made) |
| |
want |
the desire or need for a product or service |
| |
production |
the combination of the land, labor, and capital to make a good or provide a service |
| |
distribution |
the act of making a product or service available to people |
| |
benefit |
positive result of making an economic decision |
| |
opportunity cost |
the highest valued benefit given up when a choice is made |
| |
scarcity |
resources are always limited compared with the number and variety of wants people have |
| |
consumption |
the act of buying or using goods and services |
| Add or remove terms from this set |
